
Strategic Decisions for a Successful Digital Transformation with SAP S/4HANA in Banks & Financial Service Providers
Autor

Alexander Walta
Director Senior Advisor Core Banking Transformation at alseda Consulting
Digital transformation is no longer an option but a necessity for companies that want to remain competitive. However, before new technologies are introduced and processes are redesigned, well-founded strategic decisions must be made. These decisions set the course for a successful transformation and should be carefully considered.
Below, we outline the most important strategic questions that companies should take into account during their digital transformation:
1. Cloud or On-Prem – Choosing the Right Infrastructure
One of the central decisions concerns the choice of IT infrastructure. Companies must evaluate whether to operate their systems in the cloud or on-premises.
- Cloud solutions offer scalability, high flexibility, and relieve the IT department from maintenance tasks.
- On-prem provides greater control over data and may be required in some regulated industries.
The decision-making process should be based on a thorough analysis of business needs, security requirements, and costs.
2. Strategy & Business Case – Setting Clear Goals
Every digital transformation should begin with a clear strategy and a well-founded business case. This includes:
- Defining objectives (e.g., efficiency improvement, new business models, compliance requirements)
- Conducting a cost-benefit analysis
- Identifying relevant stakeholders
Without clear objectives, there is a risk that digitalization initiatives may be ineffective or miss the company’s actual goals.
3. Greenfield vs. Brownfield – Evolution or New Start?
Companies often face the question of whether to evolve their existing IT and process landscape (Brownfield) or build an entirely new system (Greenfield).
- Greenfield offers the opportunity to create a modern architecture from scratch without legacy constraints.
- Brownfield is often more resource-efficient since existing systems can be integrated and modernized.
The best approach depends on the specific circumstances of the company.
4. Data Quality & Integration – The Foundation for Success
Without high-quality data, any digital transformation is doomed to fail. Companies should ensure that:
- Data is consistent, up-to-date, and clean
- Various systems can be seamlessly integrated
- Data migration and management are strategically planned
Only with a solid data strategy can the full potential of digitalization be realized.
5. Regulatory Considerations – Planning for Compliance from the Start
Regulatory requirements play a key role in digital transformation. Data protection (e.g., GDPR), industry-specific regulations, and security standards must be considered from the outset. Companies should:
- Involve compliance experts early
- Integrate data protection and security policies into their strategy
- Ensure that systems and processes comply with regulatory requirements
Conclusion
A successful digital transformation requires strategic clarity and well-thought-out decisions in the areas of infrastructure, objectives, architecture, data, and compliance. Companies that take these factors into account lay the foundation for sustainable success in the digital future.
Would you like to strategically optimize your digital transformation?
Contact us for more information at infomail (at)alseda.com